The Top 5 Analyst Questions From ServiceNow's Q4 Earnings Call

ServiceNow’s fourth quarter results surpassed Wall Street’s revenue and non-GAAP profit expectations, but the market reaction was notably negative. Management focused on the acceleration in AI-driven product uptake and major enterprise wins, citing strong adoption of Now Assist and workflow automation across industries. CEO Bill McDermott described the period as ServiceNow's “largest quarter in history” for CRM net new annual contract value, emphasizing customer demand for end-to-end AI and workflow solutions. Despite these achievements, management acknowledged that recent M&A activity and questions about future growth drivers contributed to investor uncertainty.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From ServiceNow’s Q4 Earnings Call

• Alex Zukin (Wolfe Research): Asked about tailwinds and headwinds for AI monetization. CEO Bill McDermott described strong enterprise demand for cross-functional AI platforms and rapid adoption of assist packs, noting, “Our pipelines have never been better.”
• Sanchez (Morgan Stanley): Inquired about federal business performance amid a government shutdown. McDermott emphasized pipeline strength in both U.S. federal and global government markets, saying, “What didn’t happen in 2025 is only good news for 2026.”
• Gabriela Borges (Goldman Sachs): Questioned gross margin headwinds related to cloud infrastructure and AI. CFO Gina Mastantuono attributed the temporary margin impact to hyperscaler partnerships and assured that efficiencies would drive bottom-line accretion.
• Samad Samana (Jefferies): Sought clarity on future M&A strategy. McDermott asserted that ServiceNow remains focused on organic growth and described recent acquisitions as unique, with no large deals planned near-term.
• Patrick Walravens (JMP Securities): Raised concerns about AI agent monitoring and security. President Amit Zavery explained how the AI control tower addresses real-time monitoring, kill switches, and compliance, aiming to alleviate enterprise security fears.

Catalysts in Upcoming Quarters

In the coming quarters, StockStory analysts will be tracking (1) the pace of AI-native product adoption and upsell expansion within ServiceNow’s customer base, (2) integration progress and early contributions from ARMS and VESA in strengthening the security platform, and (3) signs of margin stabilization as cloud infrastructure investments scale. The impact of major partnerships and the evolution of hybrid pricing will also be important milestones for monitoring the company’s strategic execution.

ServiceNow currently trades at $109.65, down from $129.62 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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